USDA Capital Improvements Form for Recaptures

What are capital improvements?

Capital improvements are additions that add to the value of the property above and beyond repairs that maintain the property in good condition. General maintenance and updating your home to keep it in good condition does not qualify as a capital improvement. You can obtain credit for the “value” that the capital improvement added to your home, not the actual cost of the improvement. An appraiser must determine how much “value” is added.

Examples of capital improvements that are eligible for credit include: Adding a garage, constructing an additional room, or adding a deck, patio, porch, fence, storm windows, skylights, outside lighting, or major landscaping.

Examples of activities that do not quality for capital improvements credit include: Yard maintenance, painting, wallpapering, replacing floor coverings such as carpets or linoleum, replacing the roof, siding, wells, septic systems, new or replacement appliances, furnaces, or water heaters.

How can I receive credit for capital improvements?

If you wish to receive credit for capital improvements, you will have to complete the Capital Improvements Form below within 15 days of receiving the Congratulations letter

Please list additions and/or improvements to your home that you wish to be considered. Provide a brief description of the capital improvement and the date the work was completed (for example, constructed a 10’ x 12’ deck in July 1998).
CSC will make a determination regarding the eligible improvements based on Agency guidelines.